A NEW report on pay review bodies (PRBs) suggests they have become a “political Trojan horse” for governments to undermine collective bargaining and degrade wages. 

The Institute of Employment Rights (IER) launched its report “Pay review bodies: their past and their future” alongside trade union leaders in Westminster on Thursday evening. 

Written by Dr Andrew Moretta in collaboration with several unions, the report highlights how over time, successive governments have exerted influence over PRBs, turning their recommendations into mere options for the government to accept or ignore as they see fit.

IER director James Harrison explained: “The government have three bites of the cherry. 

“They can hand pick the PRB panel, they can issue a remit letter to the panel to tell them what they can and can’t talk about with the union, as well as what budget they can have. 

“Lastly, the government can then ignore the recommendations altogether.

“The way that it’s manifested under successive governments is that they’re no longer independent bodies. Most PRBs are essentially a wing of government.”

The report concludes by making a list of practical recommendations to reform the system.

Mr Harrison said: “As our report recommends, where PRBs exist, this should be compliant with international law — truly independent from government, recommendations implemented in full by government, and PRBs not implemented in sectors where there is union organisation. 

“Also, if unions are unhappy with their PRB arrangements, they should be free to swiftly revert back to collective bargaining, as well as having the right to strike to make that bargaining meaningful.”

Commenting on the report, General Federation of Trade Unions general secretary Gawain Little said: “Pay review bodies have been used by successive governments to hold down workers’ pay. 

“Too often, they lack independence and are a poor substitute for real collective bargaining. 

“The newly elected Labour government has an opportunity to reset this pattern and to lead a massive expansion of collective bargaining across our economy, bringing us in line with international expectations and introducing a genuine new deal for workers.”

PCS general secretary Fran Heathcote said: “The real experts on pay are the ones receiving it: our members. 

“We don’t need an independent pay review body to tell us what fair pay is — our members know and we are their voice. 

“We welcome the new government’s commitment to sectoral collective bargaining and look forward to that being implemented in the Civil Service.”